Section 48D, Form 8942 Assistance Available for Biotech, Pharmaceutical & Health Research

May 25, 2010
Cleveland, Ohio

The CPA, business and financial advisors at Skoda Minotti are offering assistance to companies interested in applying for Section 48D , a significant tax credit and cash grant opportunity available to qualifying companies in the biotech, pharmaceutical and health research industries.

This opportunity became available on March 23, 2010, as President Obama signed the Patient Protection and Affordable Care Act into law. As part of this Act, New Internal Revenue Code Section 48D was created, offering a total of only $1 billion of combined tax credits and cash grants to qualifying companies with no more than 250 employees. The money awarded will be determined by expenditures for specific research and development efforts during 2009 and 2010, called Qualifying Therapeutic Discovery Projects, and will equal to 50 percent of the qualified investment of the eligible taxpayers.

Last week, the Department of Treasury added to the previous announcement as it released the administrative procedures regarding Section 48D and extended the deadline for applications.

According to the announcement, applications for the credit must be filed to the Department of Treasury by July 21, 2010 when preliminary reviews will begin. These reviews are expected to be completed by September 30, 2010, and as a result, approval will likely occur by October 29, 2010, only 30 days after the deemed application date.

Applications must be made on Form 8942, which is scheduled to be released by the IRS by June 21, 2010. The Form 8942 will require a substantial amount of information from each applicant and will allow taxpayers the option to choose between the cash grant and the tax credit.

If you would like to speak with a tax accountant or auditor about your eligibility for this opportunity, or if you would like us to help ensure timely preparation of your application, feel free to contact Jim Sacher at Skoda Minotti at (440) 449.6800. For more information on the Act and the Qualifying Therapeutic Discovery Project guidelines, visit http://www.skodaminotti.com/section48D.html.

About Skoda Minotti
Skoda Minotti (www.skodaminotti.com, 888-201-4484) is a CPA, business and financial advisory firm. Clients of the firm range from closely-held businesses to public companies, from individuals and partnerships to corporations, trusts and estates. Skoda Minotti is an independent member of the BDO Seidman Alliance. The Alliance offers its vast resources and technical expertise to clients through over 200 firms and 360 locations across the United States and 621 firms in 107 countries globally.